Practice questions · Project Management
PRINCE2 Foundation (PeopleCert): Practice Questions
Original concept-check questions on PRINCE2 Foundation (PRINCE2 7): the seven principles, the seven practices (formerly themes), the seven processes, key management products and tailoring. Choose an answer to reveal the explanation, including why the others are wrong. These are original study questions, not real exam questions.
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How many principles does PRINCE2 define?
Correct answer: B. PRINCE2 has seven principles, the non-negotiable rules every PRINCE2 project must follow. -
The principle 'continued business justification' means a project should:
Correct answer: C. A PRINCE2 project must remain justified throughout; if the business case is no longer valid, it should be stopped. -
'Manage by exception' means:
Correct answer: A. Managers are given tolerances; they escalate to the next level only when those tolerances are forecast to be breached. -
Which of these is a PRINCE2 theme (an aspect managed throughout the project)?
Correct answer: D. Risk is one of the PRINCE2 themes (alongside business case, organisation, quality, plans, change and progress). -
Which PRINCE2 process begins a project, before full initiation?
Correct answer: A. 'Starting up a Project' is the pre-project process that checks the project is viable and worthwhile before initiation. -
In PRINCE2, 'tolerance' is:
Correct answer: B. Tolerances are the allowable deviations (time, cost, scope, quality, risk, benefit) before exceptions are escalated. -
PRINCE2 is best described as:
Correct answer: C. PRINCE2 is a process-based method built on principles, themes and processes, designed to be tailored to each project. -
Who is accountable for directing the project?
Correct answer: D. The project board directs the project; the project manager manages it day to day within the board's tolerances. -
The principle 'focus on products' means PRINCE2 plans are based on:
Correct answer: C. PRINCE2 is product-based: you define the products and their quality first, then the work needed to create them. -
Tailoring PRINCE2 means:
Correct answer: B. Tailoring adapts the method to the project; the seven principles, however, are always applied. -
The principle 'learn from experience' means PRINCE2 teams should:
Correct answer: A. 'Learn from experience' means PRINCE2 teams seek out and record lessons before, during and after the project. Never documenting anything, repeating past mistakes, and ignoring other projects' experience all contradict the principle. -
'Defined roles and responsibilities' ensures that:
Correct answer: C. 'Defined roles and responsibilities' ensures everyone knows who does what, representing the business, user and supplier interests. Roles changing every day, no roles being needed, and 'only the project manager matters' all contradict this principle. -
'Manage by stages' means PRINCE2:
Correct answer: D. 'Manage by stages' means PRINCE2 plans, monitors and controls the project one stage at a time, with go/no-go decisions at each boundary. Planning the whole project in a single fixed plan, planning only at the end, and never planning all misstate the principle. -
The 'tailor to suit the project' principle means PRINCE2 should be:
Correct answer: B. PRINCE2 is tailored to context. It is not one-size-fits-all, skippable, or IT-only. -
How many themes does PRINCE2 define?
Correct answer: A. PRINCE2 defines 7 themes (as well as 7 principles and 7 processes). The counts of 4, 5 and 9 are incorrect. -
The Business Case theme answers whether the project is:
Correct answer: B. The Business Case theme tests ongoing justification. Staffing, tools and standards are addressed elsewhere. -
The Organization theme defines:
Correct answer: D. Organization sets the project management team structure. Budget, risk and quality are other themes. -
The Quality theme ensures that:
Correct answer: A. Quality is about meeting agreed criteria and fitness for purpose, not lowest cost, speed or team size. -
The Risk theme is concerned with:
Correct answer: C. The Risk theme is about identifying, assessing and controlling uncertainty, covering both threats and opportunities. 'Only positive events' ignores threats, while hiring staff and marketing the product belong to other areas entirely. -
In PRINCE2, an 'issue' includes:
Correct answer: B. In PRINCE2 an issue is any relevant event that has happened and needs management action, such as a request for change, an off-specification, or a problem/concern. Limiting it to only the budget, only future risks, or only good news is too narrow and misses what an issue is. -
The Progress theme is about:
Correct answer: A. The Progress theme is about monitoring actual progress against the plan and controlling whether to continue. Selling the product, writing the code and hiring staff are unrelated activities outside this theme. -
The Plans theme provides:
Correct answer: D. The Plans theme provides the framework to design, develop and maintain the project's plans. The marketing strategy, the team's salaries and the risk list belong to other areas, not the Plans theme. -
The 'Initiating a Project' (IP) process produces the:
Correct answer: C. The 'Initiating a Project' process produces the Project Initiation Documentation (PID), which forms the basis for the project. A staff salary scale, the final project report and a standalone risk register are not the main output of IP. -
'Directing a Project' (DP) is carried out by the:
Correct answer: B. The Project Board directs the project. Team members deliver; auditors and lawyers are not in this process. -
'Controlling a Stage' (CS) is mainly the day-to-day work of the:
Correct answer: C. 'Controlling a Stage' is mainly the Project Manager's day-to-day work of managing a stage. The Project Board directs at a higher level rather than handling daily control, and end users and suppliers' lawyers are not responsible for this process. -
'Managing Product Delivery' (MP) covers the relationship between the:
Correct answer: D. 'Managing Product Delivery' covers the relationship between the Project Manager and the Team Manager(s) delivering products, via work packages. Pairings such as two project boards, two customers, or two suppliers' lawyers are not part of MP. -
'Closing a Project' (CP) ensures that:
Correct answer: A. 'Closing a Project' ensures the project's products are accepted and the project is formally closed. Nothing being documented, the budget doubling, or a new project automatically starting are all incorrect descriptions of CP. -
'Managing a Stage Boundary' (SB) provides the Project Board with:
Correct answer: C. 'Managing a Stage Boundary' gives the Project Board the information to review the current stage and approve the next stage's plan. The source code, staff appraisals and the marketing plan are not outputs of SB. -
A benefit of PRINCE2 being method-agnostic about delivery is that it:
Correct answer: D. Because PRINCE2 is method-agnostic about delivery, it can be used with predictive or agile delivery approaches. 'Only works with waterfall', 'forbids agile' and 'requires one specific software tool' are all false. -
PRINCE2 stands for:
Correct answer: A. PRINCE2 stands for PRojects IN Controlled Environments (2nd version). 'Private Network 2', 'Project Inc. version 2' and 'Process Integration 2' are invented expansions. -
Which of the following is NOT one of the seven PRINCE2 principles?
Correct answer: B. Detailed up-front planning of the whole project is not a PRINCE2 principle; PRINCE2 plans stage by stage. Continued business justification, learn from experience and manage by stages are all genuine principles. -
The PRINCE2 principles are best described as:
Correct answer: C. The principles are universal (apply to every project), self-validating (proven over time) and empowering. They are not optional, not document templates, and not a list of roles. -
If a project's continued business justification disappears, PRINCE2 says the project should:
Correct answer: D. Under continued business justification, a project with no valid justification should be stopped or changed so justification is restored. Carrying on because it was approved, hiding the change, or continuing to avoid waste all contradict the principle. -
The 'learn from experience' principle expects lessons to be:
Correct answer: A. Learn from experience means lessons are sought at the start, captured and acted upon during the project, and passed on at the end. They are not left to the end only, not ignored from other projects, and not kept private. -
Under 'manage by exception', a management level escalates to the level above only when:
Correct answer: B. Manage by exception means escalation happens only when a delegated tolerance is forecast to be exceeded. It is not triggered by any small problem, the project manager's feelings, or the end of every stage. -
The 'focus on products' principle means the project first agrees:
Correct answer: A. Focus on products means defining the products and their quality criteria before deciding the activities to create them. Activities, salaries and marketing follow from, or are unrelated to, the products. -
'Manage by stages' requires, as a minimum, how many management stages?
Correct answer: C. PRINCE2 requires at least two management stages: the initiation stage and at least one further delivery stage. A single stage, seven stages, or no stages are not the minimum rule. -
Even when PRINCE2 is tailored, which part must always be applied?
Correct answer: D. Tailoring adapts processes and products, but the seven principles must always be applied for a project to be a PRINCE2 project. Full management products, a fixed stage count, and all optional roles are not mandatory. -
The principle covering business, user and supplier interests is:
Correct answer: B. Defined roles, responsibilities and relationships ensures the project represents business, user and supplier interests with clear accountabilities. Manage by exception, focus on products and learn from experience address other concerns. -
'Tailor to suit the project' aims to make PRINCE2:
Correct answer: D. Tailoring fits PRINCE2 to the project's context, including its size, complexity, importance, capability and risk. It does not make every project identical, is not limited to large projects, and never replaces the principles. -
In PRINCE2 7, the seven 'themes' from earlier versions are now called:
Correct answer: B. PRINCE2 7 renamed the seven themes as the seven practices, though the underlying aspects are similar. They are not called domains, modules or pillars. -
Which question does the Business Case practice answer?
Correct answer: A. The Business Case practice answers why the project is being done and whether it remains worthwhile (desirable, viable, achievable). 'Who is involved' is Organisation, 'how good' is Quality, and 'where are we now' is Progress. -
Which practice answers 'who is involved and what are their responsibilities?'
Correct answer: C. The Organisation practice defines the project management team structure and the three interests (business, user, supplier). Quality, Plans and Risk address other questions. -
The Quality practice is mainly concerned with:
Correct answer: A. The Quality practice defines the quality criteria for products and ensures they are fit for purpose, via quality planning and control. Choosing the cheapest supplier, setting the budget and listing risks are not its purpose. -
The Plans practice provides:
Correct answer: B. The Plans practice gives the framework to design, develop and maintain plans at project, stage and (optionally) team levels. Risk responses, the issue procedure and salaries belong elsewhere. -
The Risk practice deals with uncertainty that is:
Correct answer: C. The Risk practice manages both threats (negative) and opportunities (positive). Limiting it to only threats or only opportunities, or to certainties, misstates its scope. -
The Change practice handles issues such as a request for change, an off-specification, and:
Correct answer: D. In PRINCE2, the three types of issue are a request for change, an off-specification, and a problem or concern. Profit, the marketing plan and a new team member are not issue types. -
The Progress practice is mainly about:
Correct answer: A. The Progress practice monitors progress against the plan, controls via tolerances, and supports go/no-go decisions. Product design, hiring the board and writing the business case are not its focus. -
PRINCE2 7 added 'people' as:
Correct answer: B. PRINCE2 7 introduced 'people' as an integrated element, recognising that leading and engaging people is central to project success. It is not a principle, a process, or a single management product. -
Which performance target was added in PRINCE2 7 alongside time, cost, quality, scope, benefits and risk?
Correct answer: C. PRINCE2 7 added sustainability as a performance target, joining time, cost, quality, scope, benefits and risk. Velocity, marketing and headcount are not PRINCE2 performance targets. -
The process that decides whether the project is worthwhile before full initiation is:
Correct answer: D. Starting up a Project (SU) is the pre-project process that checks the project is viable and worthwhile and produces the project brief. Closing, Managing Product Delivery and Controlling a Stage occur later. -
The main output of 'Initiating a Project' (IP) is the:
Correct answer: C. Initiating a Project produces the Project Initiation Documentation (PID), the baseline for managing and assessing the project. The project brief comes from Starting up, the end project report from Closing, and a work package from Controlling a Stage. -
'Directing a Project' (DP) is performed by the:
Correct answer: D. Directing a Project is the Project Board's process: it authorises initiation, stages and closure and gives ad hoc direction. The Project Manager runs Controlling a Stage, the Team Manager runs Managing Product Delivery, and Project Support assists. -
Authorising work packages and taking corrective action within tolerance happens in which process?
Correct answer: A. Controlling a Stage (CS) is the project manager's day-to-day process: authorising work packages, monitoring, handling issues and taking corrective action within tolerance. The other processes serve different purposes. -
The interface where Team Managers accept, execute and deliver work packages is the process:
Correct answer: B. Managing Product Delivery (MP) is the team's process, controlling the interface where work packages are accepted, executed and handed back. Stage Boundary, Directing and Initiating are not where products are built. -
Updating the business case and project plan and preparing the next stage's plan occurs in:
Correct answer: C. Managing a Stage Boundary (SB) updates the business case and project plan and prepares the next stage plan so the board can decide whether to continue. The other processes do not perform this stage-end work. -
Confirming that the project's products have been accepted occurs in which process?
Correct answer: B. Closing a Project (CP) confirms acceptance of the products, evaluates the project, and recommends closure to the board. Initiating sets up the project, Directing oversees it, and Controlling a Stage manages daily delivery. -
How many processes does PRINCE2 define?
Correct answer: D. PRINCE2 defines seven processes (SU, DP, IP, CS, MP, SB, CP), alongside seven principles and seven practices. Five, six and eight are incorrect. -
The trigger that starts the 'Starting up a Project' process is the:
Correct answer: A. A project mandate from corporate, programme management or the customer triggers Starting up a Project. The PID, end stage report and highlight report are produced later, not the trigger for SU. -
Which process runs across the entire life of the project rather than within a single stage?
Correct answer: B. Directing a Project runs from the end of start-up to project closure, spanning the whole life of the project at board level. Managing Product Delivery and Controlling a Stage operate within stages, and Starting up a Project is pre-project. -
The report a Project Manager sends to the Project Board at an agreed frequency to summarise stage progress is the:
Correct answer: A. The highlight report is sent by the Project Manager to the Project Board at an agreed frequency to summarise stage progress. The exception report is raised when a tolerance is forecast to breach, the end project report comes at closure, and the checkpoint report goes from a Team Manager to the Project Manager. -
A report a Team Manager sends to the Project Manager on work-package progress is the:
Correct answer: D. The checkpoint report flows from a Team Manager to the Project Manager on work-package progress. The highlight report goes to the board, the exception report signals a forecast tolerance breach, and the end stage report is produced at a stage boundary. -
When a tolerance is forecast to be exceeded, the Project Manager produces a(n):
Correct answer: C. An exception report is produced when a stage's tolerance is forecast to be exceeded, alerting the board. A highlight report is routine reporting, while the lessons log and daily log capture lessons and informal notes. -
On the Project Board, who is ultimately accountable for the project and its business case?
Correct answer: D. The Executive is ultimately accountable for the project and owns the business case, representing the business interest. The Senior User and Senior Supplier represent user and supplier interests, and the Project Manager manages day to day. -
The Senior User role on the Project Board represents:
Correct answer: C. The Senior User represents those who will use the products and is accountable for specifying needs and realising benefits. The business funding interest is the Executive's, the build capability is the Senior Supplier's, and day-to-day management is the Project Manager's. -
A 'work package' is best described as:
Correct answer: A. A work package is the information about a piece of work agreed between the Project Manager and a Team Manager, including products, constraints and reporting. It is not the project plan, business case or risk register. -
The document that captures the project's products with their quality criteria at a high level is the:
Correct answer: B. The project product description defines the project's main product and its acceptance and quality criteria at a high level. The highlight report, daily log and checkpoint report serve reporting and logging purposes. -
Project assurance in PRINCE2 is the responsibility of, and is accountable to, the:
Correct answer: C. Project assurance is the Project Board's responsibility; the board may delegate assurance activities but remains accountable. It does not belong to the Project Manager, the Team Manager, or any lawyers. -
Which is a valid PRINCE2 management stage characteristic?
Correct answer: B. Management stages are the sections a project is divided into for control, separated by board decision points, and may vary in length. They are not fixed in number, and they do not remove the business case. -
The 'daily log' is mainly used by the Project Manager to:
Correct answer: A. The daily log records informal issues, required actions and observations not captured elsewhere. It does not replace the risk register, approve the business case, or direct the board. -
PRINCE2 deliberately does NOT cover which of the following?
Correct answer: D. PRINCE2 deliberately leaves out specialist delivery techniques and detailed leadership/HR methods, focusing instead on the management of projects. The principles, the process model and tailoring guidance are all within PRINCE2. -
Tailoring PRINCE2 is the responsibility of the project team but is recorded in the:
Correct answer: C. How PRINCE2 is tailored for the project is documented in the Project Initiation Documentation (often in a project approach or tailoring section). It is not recorded in the highlight or checkpoint reports, nor solely in the lessons log. -
Embedding (by an organisation) differs from tailoring (to a project) in that embedding is done by:
Correct answer: B. Embedding is what an organisation does to adopt PRINCE2 across all its projects, whereas tailoring adapts the method to a specific project. It is not done by a single project manager, lawyers, or end users. -
PRINCE2 can be combined with agile delivery because PRINCE2 mainly governs:
Correct answer: A. PRINCE2 governs project management and is delivery-method agnostic, so it can wrap around agile ways of working. It is not waterfall-only and does not dictate coding standards or languages. -
The minimum PRINCE2 requirement for the Project Manager and Project Board roles is that they must be:
Correct answer: D. The roles must be filled, and one person may hold more than one role (within rules, for example the Executive and Senior User may be combined), but some separations are required. They need not be outsourced, cannot all collapse to one person, and are not left vacant for small projects. -
A key purpose of the business case in PRINCE2 is to:
Correct answer: B. The business case documents the justification (costs, benefits, risks, timescales) and drives decision-making throughout the project. It does not list daily tasks, hold minutes, or store code. -
The PRINCE2 approach to a project that loses its justification mid-way is to:
Correct answer: C. If justification is lost, the board can decide to close the project prematurely, handled in a controlled way through Closing a Project. Quietly continuing, doubling the budget, or skipping a controlled closure are not the PRINCE2 approach. -
In PRINCE2, 'products' are categorised as:
Correct answer: A. PRINCE2 distinguishes specialist products (the things the project delivers) from management products (such as plans and reports used to manage it). Products are not limited to software, documents, or physical goods. -
The benefit of PRINCE2's common structure of three sets of seven is that it:
Correct answer: D. The consistent structure of seven principles, seven practices and seven processes gives organisations a shared vocabulary and repeatable approach. It does not force identical projects, remove the project manager, or guarantee success.
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